Heavy Duty Heat Pump Market

What is the Future Outlook on Heavy Duty Heat Pump Market in Comparison to Historic Sales?

The district heating and cooling industry, which comes under the commercial sector, is considered to be one of the most key end users of hybrid as well as ground source heavy duty heat pumps. According to the International Energy Agency, the residential segment comprises 21% of carbon emissions each year, which is increasing. District heating and cooling will reduce the excess carbon emissions as a result of employing high-efficiency and low-carbon heavy duty heat pumps for the purpose of heating and cooling.

According to FMI’s analysis, heavy duty heat pump sales have grown at 0.12 % CAGR between 2016 and 2021. COVID-19 has caused a major disruption in the overall heating and cooling industry for heat pumps. Weakening macroeconomic environment, slowdown in the sales of non-essential items and liquidity tightening caused due to the COVID-19 pandemic have caused a severe impact on the heavy duty heat pump market.

The COVID-19 pandemic has caused a severe impact on the global economy at various levels and the impact is seen on the DHC Industry as well, which is likely to adversely effect the market’s growth prospects.

With a number of end users affected in regions like East Asia and South Asia Pacific, the supply and shortage in demand is expected to result in a significant drop in Y-O-Y growth. Nonetheless, FMI has projected the global heavy duty heat pump market to grow at a 2.3% CAGR through 2031.

What is the Commercial Potential of Heavy Duty Heat Pumps?

Heavy duty heat pumps are mostly used in residential, commercial, and industrial industries. It also finds application in CHPCs for ensuring seamless uninterrupted supply of heating and cooling.

Competitive price offering, increase in end user satisfaction with regards to the performance, and efficiency of heavy duty heat pumps are the end results of research activities undertaken in the last few years. Several market players are conducting research and development (R&D) through collaboration or partnerships with other institutions. This is helping manufacturers launch new and innovative products in the market.

Moreover, establishing sales and service facilities in emerging countries, coupled with long-term partnerships with regional distributors, also paves the way for the expansion of channel reach.

Country-wise Insights

How is the Growing DHC Industry Helping Market Growth in the Nordic Countries?

NORDICS has the largest district heating and cooling capacity in the European Union, and Iceland’s is the largest in all the NORDICS countries, having the highest market share in renewable energy. Sweden exhibits the maximum demand for DHC in its urban areas. Sweden also has 1,022.3 MW of total thermal power output with 13 overall plants consisting of 40+ heat pumps.

In Denmark, over 60% of the heating and cooling needs are completed by the DHC industry. The main reason for the growth of the DHC industry in NORDICS is the reuse of the waste heat being released from industries. This also presents an attractive market for heavy duty heat pumps.

How is Germany’s market helping Heavy Duty Heat Pumps?

The Germany heavy duty heat pump market will witness appreciable growth on account of the increasing demand for renewable energy and reliable, sturdy, and energy-efficient systems which can reduce the electricity bills across the residential and commercial sectors. The main reason for this sudden rise in demand for the cost-efficient process of providing electricity is the price of household electricity rising to US$ 0.371/kWh and that for business electricity rising to US$ 0.237/kWh.

Volatile fossil fuel prices along with the growing concern about reducing the dependence on conventional heating sources for reducing carbon emissions are also key reasons for the growing demand for renewable energy. In 2016, Germany produced 8.84 metric tons of carbon emissions. So to reduce this, the government has put in place tougher CO₂ emission rules and set ambitious new carbon emission targets.

How is China’s Demand for Heavy Duty Heat Pumps Shaping Up?

Forces such as urbanization, rapid economic expansion, and population growth in China are driving the demand for heating and cooling from data centers and district heating and cooling. China is witnessing interest from international investors in the space for data centers and for infrastructure. Heating and cooling is a must for industrial and commercial sectors, who also need to use their residual heat to overcome frequent changes in the temperature. Some districts in China suffer from extreme heat and cold, so to overcome this, the use of heavy duty heat pumps has become essential.

Growing demand for cooling in GCC countries

Due to the hot and arid climate of GCC countries, the need for district cooling and heating is more. Qatar leads the market in the Gulf region, with over 17% of total demand for air conditioning in GCC countries. Currently 39 district heating and cooling plants are established in Qatar with a capacity of one million tons of refrigeration. Air conditioning takes up over 50% of the total electricity demand in GCC countries.

Category-wise Insights

Who are the Leading End Users of Heavy Duty Heat Pumps?

The market share accounted by the use of heavy duty heat pumps in commercial end use sectors is higher as compared to other end users. The commercial sector accounts for over 40% of the total market share. This is followed by the residential and industrial end use sectors, which combined have a share of over 43%, and lastly by CHPCs.

Which is the Preferred Type of Heavy Duty Heat Pump?

Ground source heat pumps are highly sought after in the heavy duty heat pumps market. The segment is expected to cover nearly 30% of the global market by 2031. The increasing use of these heat pumps in central building heating or cooling systems will drive sales in the category. Ground source heat pumps can be installed in the backyard of a home located in nearly anywhere around the world. This is one of the chief attributes, driving sales in the category.

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Which System Type is Preferred More?

Air source and absorption heavy duty heat pumps both account for approximately 41 to 50% of the heavy duty heat pump market globally. Heavy duty heat pumps within the air source segment include air-water heat pumps and air-air heat pumps, which comprise 50 to 55% of the heavy duty heat pump market.

Which Power Source Dominates the Global Market?

The gas driven heat pumps in the power source segment currently holds higher value share than electric source because electric technology will take ample time to be adapted by end-users in heavy duty heat pump applications. The electric source pumps have high CAGR whereas the conventional gas source heat pumps have moderate growth over the forecast period.

What Is the Suitable Power Range In Heavy Duty Heat Pumps?

The heavy duty heat pumps with power range between 10-20 MW are likely to be in higher demand over the forecast period in comparison to those with power range between 5 MW and 40 MW. Their moderate power range allows them to be installed in various type of district heating and cooling applications and industrial facilities.

Which Refrigeration Type is More Preferred for Heavy Duty Heat Pumps?

With the ongoing environmental crisis and the phasing out of hydrofluorocarbons, the natural refrigerants such as CO2 and ammonia are being widely employed in heavy duty heat pump applications. Ammonia is expected to expand, registering the leading CAGR over the forecast period followed by CO2.

Competitive Landscape

The heavy duty heat pump market is highly competitive, with the presence of a large number of players operating in the market. Some of the players are focusing on carving a niche for specific demographics. The market has robust partnerships throughout the value chain, with high focus on innovations. Manufacturers are aiming at strategic collaborations with end users and regional distributors to address the requirements of an expanding customer base. Brand consciousness and aggressive marketing makes it challenging for new entrants in this market. Through these developments, companies are aiming at a competitive advantage.

Some of the leading companies operating in the market are:

• Thermax Ltd
• Star Refrigeration
• GEA Group
• MAN Energy Solutions
• Oilon OY
• Siemens Energy
• Johnson Controls
• Friotherm AG
• Engie Refrigeration GmbH
• Daikin Industries
• Enertech AB
• Mitsubishi Heavy Industries
• Others

*The list is not exhaustive, and only for representational purposes. Full competitive intelligence with SWOT analysis available in the report.

Scope of the Report

Key Questions Answered in the Report

• Which is the most lucrative market for heavy duty heat pumps?

  Europe currently leads the global market for heavy duty heat pumps. Sales in Europe will be over 33.0% of total demand throughout the forecast period.

• Which are the top-selling heavy duty heat pumps?

  Ground source and hybrid heat pumps are highly sought-after for many applications. The demand for ground source and hybrid heat pumps is expected to remain high in the near future, especially due to continuous increase in the demand for heating and cooling with less electricity consumption from consumers in all regions.

• Which is the most lucrative end use sector for heavy duty heat pumps?

  Heavy duty heat pumps are widely used in the commercial sector. Applications within this sector include buildings, district heating & cooling and data center. The geothermal heat pump is the key system type in the commercial sector, having the highest growth.

• Which are some of the leading Heavy Duty Heat Pump manufacturers?

  Some of the leading companies manufacturing heavy duty heat pumps are Thermax Ltd., Star Refrigeration, GEA Group, MAN Energy Solutions, Oilon OY, Siemens Energy, Johnson Controls, Friotherm AG, Engie Refrigeration GmbH, Daikin Industries, Enertech AB, Mitsubishi Heavy Industries, and others.

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• Is this research conducted by FMI?

  Yes, the research has been conducted by expert analysts of FMI through a combination of primary research and secondary research. To know more about how the research was conducted, you can speak to research analyst

• What research methodology is followed by FMI?

  FMI follows a methodology that encompasses demand side assessment of the market, and triangulates the same through supply side analysis. This methodology is based on use of standard market structure, methods and definitions. Request detailed methodology

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  FMI speaks to stakeholders across the spectrum, including C-level executives, distributors, product manufacturers, industry experts. For a full list of primary respondents, please reach out to us.

• What are the sources of secondary research?

  FMI conducts extensive secondary research through proprietary databases, paid databases, and information available in the public domain. We refer to industry associations, company press releases, annual reports, investor presentations, and research papers. More information about desk research is available upon request.

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Heavy Duty Heat Pump Market

By Type

• Air-water Heat Pump
• Air-air Heat Pump
• Ground Source Heat Pump
• Hybrid Heat Pump

By Power Source

• Electric
• Gas Driven

By System Type

• Air Source Heat Pump
• Geothermal Heat Pump
• Absorption Heat Pump

By Refrigerant Type

• HFC
• CO2
• Ammonia
• Hydrocarbons
• Others

By Power Range

• 5 to 10MW
• 10 to 20MW
• 20 to 40MW

By End User

• Residential
• Commercial
  • Buildings
  • District Heating and Cooling
  • Data Centers
• Industrial
• CHPCs

By Region

• North  America
• Latin America
• Europe
• East Asia
• South Asia & Pacific
• Middle East & Africa